CSX Updated
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Transcript of CSX Updated
Company Background Stock Price Major Competition Micro and Macro Environment Intensity of Rivalry S.W.O.T Analysis Recommendation
Agenda
Recent upgrades by FBR Capital & RBC Avg. price target $26.54 Median price target $27.00
Analyst Ratings
Stock Price – Last 5 Years
2008 2009 2010 2011 2012
Highs $ 70.70 $ 50.80
$ 21.60
$ 27.06 $ 23.71
Lows $ 30.61 $ 20.70
$ 14.02
$ 17.69 $ 18.88
Dividends $ 0.77 $ 0.88 $ 0.98 $ 0.45 $ 0.54
6
Business
Provides rail-based transportation in 23 states in the eastern US
Operates various distribution centers & connects non-rail customers through transferring products to trucks
Approx. 21,000 miles of rail in the eastern US as well as Ontario and Quebec
Main items transported include: Crushed stones, food, consumer, agriculture,
chemical products and coal6
Financial Info Sheet
NYSE: CSX Sales: $11.756B Fuel: $1.672B
14.2225% of sales Labor & Fringe:
$3.02B 25.689% of sales
Market Cap: $ 24.44B Price/Trailing Earnings: Price/Forward Earnings: Price/Sales: Price/Book:
Major Comparables Union Pacific Corp Market Cap: $65.57B
Canadian National Railway Company
Market Cap: $42.01B
Norfolk Southern Market Cap: $23.70B
Canadian Pacific Railway Limited
Market Cap: $21.99B
Strengths: Capable of reaching 2/3rds of
Americans Ability to transport a diverse portfolio:
Grains, chemicals, autos, metals, paper, consumer products
Weakness: Increases in passenger train volume Poor economic conditions Increase regulation Severe weather Liability of hazardous material
S.W.O.T. Analysis
Opportunities:
Increase in global competiveness Continued growth in manufacturing and energy Provide the most fuel efficient way to ship
Threats: Disruption in supply chain
Could increase prices Fuel shortage by OPEC Terrorism
S.W.O.T. Analysis
Threat of Entry
Location Advantages Government Subsidies
Buyer Power Who are the buyers?
Supplier Power Who are they Easily integrate forward?
Porter’s 5 Forces
GDP: Last Year $15.66 Trillion (2.2%, YOY) Operations cover, Eastern U.S., Ontario and
Quebec 21,000 mi. of Track Access to 70 Ports
Fuel is the largest input for CSX Monitor fuel prices
Political: EPA influential regulating body Global: Economic conditions affect demand on
commodities
Micro Environment